Honda as well as fellow Japanese multinational Hitachi have today revealed the establishment of a new venture company, which will develop, manufacture as well as offer motors for electric vehicles.
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Hitachi Automotive Systems as well as Honda went into a Memorandum of comprehending in February, before signing a joint contract in March. Today marks the official establishment of the new business – Hitachi Automotive motor Systems Limited.
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Both conglomerates have put ahead 5 billion yen – approximately £34 million each – with Hitachi taking up a 51 per cent stake compared to Honda’s 49 per cent. The business will be based on the existing facilities of Hitachi Automotive Systems in Hitachinaka-shi.
It’s not the very first alternate propulsion venture business Honda has invested in. earlier this year the firm revealed a tie up with general Motors to produce fuel Cell System producing LLC, investing a similar amount as well as targeting a 2020 release of a new fuel-cell system.
Neither Honda nor Hitachi has put a timeframe on the electric motors it will now build, only specifying that it will “respond to the growing worldwide demand from automakers for electric motors that integrate the know-how of the two companies”.
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